The Sensex and Nifty Index may have gained over 10% in fiscal 2012-13, but the sharp decline in select mid- and small-cap stocks hogged the limelight.
While the BSE mid-cap index lost 0.8%, the small-cap index slipped 10% this 2012-13 fiscal.
However, foreign institutional investors (FIIs) continued to repose faith in Indian equities. During the fiscal, their net purchases in the secondary market alone touched about Rs. 3.5 lakh crore. If net purchases in the primary market are also taken in to account, their investment rises to nearly Rs. 3.85-lakh crore.
FIIs were enthused by the slew of policy reforms unleashed by the central government in the later part of 2012. Again, some of the funds pumped into the US and European economies by their central banks also found their way into other emerging markets, including India.
While the European Central Bank launched a bond buying plan to lower borrowing costs, the US Federal Reserve announced $ 4,000 Cr bond buying programme every month.
Among the sectoral indices, FMCG and healthcare were the star performers while metal and
power were the worst.
In 2012- 13 Gains and Lose...!
BSE Sensex Gain 10%
FMCG Gain 32.35%
Healthcare Gain 24.23%
BSE IT Gain 14.35%
Bankex Gain 13.5%
Metal Minus 20.5
Powr Minus 20
Capital goods Minus 9.8
BSE mid-cap index Minus 0.8%
BSE Small-cap index Minus 10%
A weak rupee coupled with improvement in the US economy boosted information technology (IT) stocks.
With slowing economic growth & industrial production coupled with high policy rates taking their toll on corporate performance, stock prices have been unable to sustain their upward move since the beginning of this calendar.
Mr. Jagannatham Thunuguntla, SMC Global, ''It is quite understandable that the market is putting faith only on defensive stocks while staying away from high-beta counters. The market will continue to move in a range & will take clear direction only after the general election”
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